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Utility board backs using SPLOST funds to pay off East–West interceptor loan, asks for more detail for commission
Summary
The board recommended the city use remaining SPLOST 5/6/7 funds to pay off a roughly $10 million GPO loan for the East–West interceptor, estimating about $359,000 in interest savings and asking staff for a detailed memo for the city commission.
The Albany Utility Board voted Oct. 9 to recommend that the city commission consider using remaining SPLOST sales‑tax funds to pay off a GPO loan taken for the East–West interceptor project. Staff said the payoff would reduce future interest expense by approximately $359,000. The amount staff cited in discussion was about $10,000,000 (attachment figure), subject to change if the board postpones action.
Board members discussed tradeoffs: paying off the low‑interest loan now would free up future debt capacity but would also draw down locally available SPLOST funds earmarked for specific projects. Staff proposed moving $615,000 from SPLOST 5 (originally noted for Holloway Drainage) into the payoff and reducing the SPLOST 6 request accordingly. Members asked staff to prepare a more detailed explanation of impacts, including updated payoff figures and the effect on other SPLOST‑funded projects, before the city commission acts.
During discussion, staff referenced an attachment showing a current rate well below market (reported as under 1% in material) and clarified the loan’s low interest relative to other borrowing options; the board nevertheless voted to recommend the early payoff and to forward the recommendation and supporting documentation to the city commission for final decision.
